Markets

NYSE Going to Next Phase of Decimal-Pricing Pilot

Beginning Monday, the New York Stock Exchange will add the 57 securities listed below to its decimal-pricing pilot program, which marks the beginning of the end of fractional pricing of U.S. stocks. The pilot program began Aug. 28 with seven stocks, including Gateway Inc. (ticker symbolGTW), FedEx Corp. (FDX) and Hughes Supply (HUG). Starting Monday, investors looking to buy or sell the securities listed below will no longer have to enter prices in minimum fractions of 1/16th of a dollar (6.25 cents). Instead, these securities will trade in minimum increments of one penny. The move to simple decimal pricing in the first phase of the NYSE program has already been shown to have narrowed the spread between "bid" and "asked" prices of those stocks. That's good for investors, of course. Still, decimal pricing also brings certain risks, including that professional traders may find it easier to "step ahead" of individual investors' orders in a fast-moving market by offering to buy for a mere penny more, or to sell for a penny less. The NYSE expects to trade all stocks in decimals by April 1, 2001. Nasdaq also expects to move to decimals in 2001.